SunCar Technology Reports First Quarter 2025 Results

NEW YORK, May 19, 2025 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in cloud-based, software-focused B2B auto eInsurance and auto services in China, today reported first quarter 2025 financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

    --  Revenue for first quarter 2025 increased 20% to $102.6 million, compared
        to $85.6 million in first quarter 2024.
    --  BYD: Expanding our multi-year BYD partnership, including expanded
        cooperation with 50 dealerships in East China to create a differentiated
        insurance solution
    --  Leapmotor: Completed differentiated SAAS insurance solution for
        Leapmotor dealers
    --  Tesla: Extended service platform to include insurance policy benefit
        features
    --  Xiaomi and Zeekr: Launched cloud-based customer service systems
    --  CCB: Landed a landmark designated driver contract with China's 2(nd)
        largest bank
    --  PICC: Signed major Designated Driver contracts across 13 provincial
        branches
    --  The Company has initiated full-year 2025 revenue guidance of $521
        million to $539 million, reflecting forecasted revenue growth of 18% to
        22%.

Management Commentary

"We carried strong momentum into the first quarter, building on a record 2024 and benefitting from growing relationships with our EV partners in the insurance segment and multiple Fortune 100 customer wins in auto services" said Zaichang Ye, Chairman and CEO of SunCar.

Mr. Ye continued, "We delivered revenue growth of 20% from the first quarter of 2024. SunCar's insurance platform is accelerating its traction within our auto partners as we expand our SAAS product suite to add more features. Our continued investment in AI and product innovation positions us well for sustained growth for the remainder of 2025.

Additionally, we are delighted to announce our growing partnership with BYD where we continue to strengthen a multi-year collaboration by providing their dealers with market-leading insurance solutions."

BYD Partnership

    --  SunCar has partnered with 50 major BYD dealerships in the East China
        region to provide comprehensive insurance agency services for BYD's
        premium EV brands: Yangwang, Tengshi, and Fangchengbao.
    --  By integrating our dealership platforms, SunCar and BYD provide
        higher-quality service and one-stop insurance solutions for new vehicle
        sales.

eInsurance Review

    --  Partnered with Leapmotor's dealerships to build a SAAS solution that
        enables dealers to sell auto insurance independently, a new revenue
        model for dealers
    --  Integrated Tesla's service packages into the Xuanbei platform, linking
        policy benefits directly to auto insurance purchases, creating a
        seamless, closed-loop customer journey.
    --  Launched cloud-based customer service systems for Xiaomi and Zeekr,
        significantly improving pre-sales conversion and satisfaction while
        demonstrating the scalability of SunCar's service model.
    --  Secured a dealership-model partnership with Zhongyou Putai, expanding
        SunCar's insurance footprint by adding 20 new stores in the first
        quarter.
    --  Established a strategic collaboration with China Continent Insurance,
        integrating SunCar's capabilities into their broader industrial
        ecosystem to drive innovation in customer engagement, risk analytics,
        and digital enablement.

Auto Services Review

    --  Closed a landmark agreement with China Construction Bank (CCB) in April
        2025. This inaugural project is projected to generate RMB 60 million
        over the next 18 months and marks the entry of SunCar's Designated
        Driver service into a top-tier financial institution.
    --  Awarded "Designated Driver service" projects with PICC across 13
        provincial branches, including Beijing, Shanghai, Zhejiang, and Fujian,
        marking a significant nationwide expansion under total corporate
        agreements.
    --  Deepened strategic alignment with Ping An across multiple service
        categories:
        --  Providing Ping An Sichuan designated-driver services through a new
            contract
        --  Formed a national partnership with Ping An HQ to deliver airport
            lounge services across China, supporting high-end policyholders.
        --  Secured car care and beauty service contracts with Ping An branches
            in Beijing, Zhejiang, Xinjiang, and other regions.
    --  Won a key service project with CPIC Zhejiang, reinforcing SunCar's
        reputation for standardized and scalable B2B solutions.
    --  Advanced integrated "auto insurance + vehicle services" offerings
        through deeper collaboration with China Continent Insurance in Zhejiang,
        Beijing, and Gansu, leveraging new retail channels.

First Quarter 2025 Financial Results

    --  Revenue increased by 20% to $102.6 million for the three months ended
        March 31, 2025, compared to $85.6 million for the same period in 2024.
    --  Auto eInsurance revenue increased by 37% to $45.9 million, compared to
        $33.5 million in the prior-year period, driven by a higher volume of
        insurance policies sold.
    --  Technology Services revenue increased by 41% to $10.7 million, up from
        $7.5 million in the first quarter of 2024.
    --  Auto Services revenue rose 3% to $46.0 million, compared to $44.6
        million for the same period last year.
    --  Operating costs and expenses increased to $105.5 million for the first
        quarter of 2025, from $90.1 million in the first quarter of 2024.
    --  Integrated service costs rose to $48.4 million, from $44.5 million in
        the prior-year quarter.
    --  Promotional service expenses increased to $44.7 million, from $35.4
        million in Q1 2024, reflecting continued investments to drive market
        expansion.
    --  Selling expenses rose to $6.1 million, compared to $5.0 million in the
        prior-year period, primarily due to increased marketing and distribution
        efforts.
    --  General and administrative expenses increased to $5.4 million, from $4.6
        million in Q1 2024.
    --  Research and development expenses grew to $0.9 million, up from $0.6
        million, reflecting continued investment in product development and
        technology enhancement.
    --  Operating loss narrowed to $3.0 million for the first quarter of 2025,
        compared to a loss of $4.5 million in the prior-year period.
    --  Adjusted EBITDA, a non-GAAP metric that excludes certain non-recurring
        and non-cash items, is helpful in evaluating our operational performance
        alongside GAAP metrics. Adjusted EBITDA for the first quarter of 2025
        was negative $1.3 million, compared to negative $3.1 million in the
        first quarter of 2024.

* Adjusted EBITDA

We believe that Adjusted EBITDA, as defined below, is useful in evaluating our operational performance distinct and apart from certain expenses that may not be indicative of our recurring core business operating results and non-operational expenses. Adjusted EBITDA is defined as Net loss adjusted for depreciation and amortization, financial expenses, net, investment income, other non-recurring income, net, income tax benefit, share-based compensation and non-recurring expenses related to capital raises.

Net loss Margin is defined as net loss divided by total revenues, and Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by total revenues.

The following table reconciles Net loss to Adjusted EBITDA for the three months ended March 31, 2024 and 2025.


                                                    For the three months ended
                                                               March
                                                                                   31,


                                                  2024                                  2025


                                                          (In thousands)



     Net loss                              $
     (4,987)                          $
      (3,647)



     Depreciation                               1,105                                 1,272



     Financial expenses, net                    1,170                                 1,029



     Investment income                          (192)                                (122)



     Other non-recurring income, net            (337)                                (134)



     Income tax benefit                         (199)                                 (84)



     Share-based compensation (1)                 374                                   370



     Transaction fees (2)                                                               15



     
              Adjusted EBITDA        $
     
       (3,066)                $
           
        (1,301)



     
              Net loss Margin               (5.8) %                              (3.6) %



     
              Adjusted EBITDA Margin        (3.6) %                              (1.3) %



     (1) Non-cash expense related to compensation costs for equity classified awards by the
            subsidiary.





     (2) Includes non-recurring transaction related fees and expenses associated with the
            Company's capital raises.

2025 Outlook

The Company has initiated full year 2025 revenue guidance of $521 million to $539 million, reflecting forecasted revenue growth of 18% to 22%. This growth reflects continued demand across the business as many partnerships are in early stages of development.

About SunCar Technology Group Inc.

Founded in 2007, SunCar is transforming the customer journey for auto services and auto insurance in China, the largest passenger vehicle market in the world. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners. As a result, SunCar has established itself as the leader in China in the auto eInsurance market for electric vehicles and the B2B auto services market. The Company's intelligent cloud platform empowers its enterprise customers to access, manage, and optimize their auto eInsurance and auto service offerings. Through SunCar, drivers gain access to a wide variety of high-quality services from tens of thousands of independent providers, all from a single application. For more information, please visit: https://suncartech.com.

Forward-Looking Statements

This press release contains information about the Company's view of its future expectations, plans, and prospects that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. For a detailed discussion of these risks, please refer to the Company's Annual Report on Form 20-F and other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update or revise these statements, except as required by law.

Contact Information:
SunCar:
Investor Relations: Ms. Hui Jiang
Email: IR@suncartech.com
Legal: Ms. Li Chen
Email: chenli@suncartech.com
U.S. Investor Relations
Tom Cook
Managing Director
ICR
Email: Tom.Cook@icrinc.com


                                                                                    
              
                SUNCAR TECHNOLOGY GROUP INC[1]


                                                                          
              
                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


                                                         
              
                (In U.S. Dollar thousands, except for share and per share data, or otherwise noted)




                                                                                                                                                                                  As of                 As of

                                                                                                                                                                              December 31,            March 31,


                                                                                                                                                                                      2024                  2025





              
                ASSETS



              
                Current assets



              Cash                                                                                                                                                       $
            26,865      $
            39,222



              Restricted cash                                                                                                                                                       2,647                 2,597



              Short-term investments                                                                                                                                               20,985                21,231



              Accounts receivable, net                                                                                                                                             75,605                83,689



              Prepaid expenses and other current assets, net                                                                                                                       70,171                80,427



              
                Total current assets                                                                                                                                   196,273               227,166





              
                Non-current assets



              Long-term investment                                                                                                                                                    274                   276



              Property, software and equipment, net                                                                                                                                27,664                26,548



              Deferred tax assets, net                                                                                                                                             10,453                10,657



              Other non-current assets                                                                                                                                             11,458                11,525



              Right-of-use assets                                                                                                                                                     606                   509



              
                Total non-current assets                                                                                                                                50,455                49,515





              
                TOTAL ASSETS                                                                                                                             $
     
              246,728 $
     
              276,681





              
                LIABILITIES AND SHAREHOLDERS' EQUITY



              
                Current liabilities



              Short-term loan                                                                                                                                            $
            83,597      $
            84,363



              Accounts payable                                                                                                                                                     56,812                66,933



              Deferred revenue                                                                                                                                                      2,421                 3,534



              Tax payable                                                                                                                                                           1,361                 1,337



              Accrued expenses and other current liabilities                                                                                                                        5,792                 5,320



              Amount due to related parties, current                                                                                                                                6,238                 6,292



              Operating lease liability, current                                                                                                                                      544                   427



              
                Total current liabilities                                                                                                                              156,765               168,206





              
                Non-current liabilities



              Operating lease liability-non-current                                                                                                                                    21                    17



              Amount due to a related party, non-current                                                                                                                           22,761                17,897



              Warrant liabilities                                                                                                                                                     947                   947



              
                Total non-current liabilities                                                                                                                           23,729                18,861





              
                Total liabilities                                                                                                                        $
     
              180,494 $
     
              187,067





              
                Commitments and contingencies (Note 17)





              
                Shareholders' equity



              Class A Ordinary shares (par value of US$0.0001 per share; 400,000,000                                                                                        $
              5         $
              6
    Class A Ordinary shares authorized as of December 31, 2024 and March 31,
    2025, respectively; 51,845,493 and 51,645,493 Class A Ordinary shares issued
    and outstanding as of December 31, 2024, respectively; 58,988,351 and
    55,983,284 Class A Ordinary shares issued and outstanding as of March 31,
    2025, respectively)



              Class B Ordinary shares (par value of US$0.0001 per share; 100,000,000                                                                                                    5                     5
    Class B December 31, 2024 and March 31, 2025, respectively; 46,659,565 and
    46,659,565 Class B Ordinary shares issued and outstanding as of December 31,
    2024 and March 31, 2025, respectively)



              Additional paid in capital                                                                                                                                          208,701               236,560



              Accumulated deficit                                                                                                                                               (195,387)            (198,789)



              Accumulated other comprehensive loss                                                                                                                                (1,432)              (2,966)



              
                Total SUNCAR TECHNOLOGY GROUP INC's shareholders' equity                                                                                                11,892                34,816



              Non-controlling interests                                                                                                                                            54,342                54,798



              
                Total shareholders' equity                                                                                                                              66,234                89,614





              
                TOTAL LIABILITIES AND SHARESHOLDERS' EQUITY                                                                                              $
     
              246,728 $
     
              276,681



              
                [1] The financial statements shall be read in connection with the financial statement footnotes that are contained in the
    Company's interim report for the first quarter ended March 31, 2025 on Form 6-K to be furnished voluntarily by the Company
    on or around the date of this release, which form an integral part of the financial statements.


                                                                                  
              
                SUNCAR TECHNOLOGY GROUP INC


                                                 
              
                UNAUDITED 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


                                                      
              
                (In U.S. Dollar thousands, except for share and per share data, or otherwise noted)




                                                                                                                                                                                        For the three months ended

                                                                                                                                                                                                 March 31,


                                                                                                                                                                                     2024                                       2025





              Revenues



              Auto eInsurance service                                                                                                                                      $
         33,473                             $
          45,927



              Technology service                                                                                                                                                   7,538                                     10,665



              Auto service                                                                                                                                                        44,576                                     46,003



              
                Total revenues                                                                                                                                         85,587                                    102,595





              Operating cost and expenses



              Integrated service cost                                                                                                                                           (44,488)                                  (48,422)



              Promotional service expenses                                                                                                                                      (35,422)                                  (44,725)



              Selling expenses                                                                                                                                                   (4,983)                                   (6,063)



              General and administrative expenses                                                                                                                                (4,633)                                   (5,420)



              Research and development expenses                                                                                                                                    (606)                                     (923)



              
                Total operating costs and expenses                                                                                                                   (90,132)                                 (105,553)





              
                Operating loss                                                                                                                                        (4,545)                                   (2,958)





              Other expenses



              Financial expenses, net                                                                                                                                            (1,170)                                   (1,029)



              Investment income                                                                                                                                                      192                                        122



              Other income, net                                                                                                                                                      337                                        134



              
                Total other expenses, net                                                                                                                               (641)                                     (773)





              Loss before income tax expense                                                                                                                                     (5,186)                                   (3,731)



              Income tax benefit                                                                                                                                                     199                                         84



              
                Net loss                                                                                                                                              (4,987)                                   (3,647)





              Less: Net loss attributable to non-controlling interests                                                                                                           (1,720)                                     (245)



              
                Net loss attributable to the Company's ordinary shareholders                                                                                          (3,267)                                   (3,402)





              Net loss per ordinary share



              Basic and diluted                                                                                                                                            $
         (0.04)                            $
          (0.03)





              Weighted average shares outstanding used in calculating basic and diluted loss
    per share



              Basic and diluted                                                                                                                                               89,505,058                                102,432,043





              Other comprehensive loss



              Foreign currency translation difference                                                                                                                              (845)                                   (1,203)



              
                Total other comprehensive loss                                                                                                                          (845)                                   (1,203)





              
                Total comprehensive loss                                                                                                                              (5,832)                                   (4,850)



              Less: total comprehensive (loss) income attributable to non-controlling interest                                                                                   (2,625)                                        86



              
                Total comprehensive loss attributable to the SUNCAR TECHNOLOGY                                                                             $
     
           (3,207)              $
              
            (4,936)
    GROUP INC's shareholders


                                                                                                                                       
              
                SUNCAR TECHNOLOGY GROUP INC


                                                                                                            
              
           UNAUDITED
                 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY


                                                                                                                
              
           (In U.S. Dollar thousands, except for share and per share data, or otherwise noted)




                                                                       Class A Ordinary                       Class B Ordinary
                                                                             Shares                                 Shares                                                                             Treasury shares                  Additional                      Accumulated                           Accumulated                            Total Suncar                                Non-                             Total
                                                                                                                                                                                                                                paid-in                         deficit                               other                            Technology Group                           controlling                       shareholders'
                                                                                                                                                                                                                                capital                                                          comprehensive                                Inc's
                                                                                                                                                                                                                                                                                                                                                      shareholders'                           interests                           equity
                                                                                                                                                                                                                                                                                                      loss
                                                                                                                                                                                                                                                                                                                                                        equity


                                                                 Share                     Amount     Share                            Amount                           Share                                          Amount



              
                Balance as of December 31, 2023 40,076,493                  $
           4 49,628,565                      $
              5                                       (200,000)                     
            $                         144,160                $
          (126,724)                       $
          (1,367)                          $
             16,078                    $
            51,912                   $
              67,990



              Net loss                                                                                                                                                                                                                                                             (3,267)                                                                          (3,267)                            (1,720)                             (4,987)



              Share-based compensation                                                                                                                                                                                                                                                                                                                                                                     374                                  374



              Foreign currency translation                                                                                                                                                                                                                                                                                    60                                          60                               (905)                               (845)



              
                Balance as of March 31, 2024    40,076,493                  $
           4 49,628,565                      $
              5                                       (200,000)                     
            $                         144,160                $
          (129,991)                       $
          (1,307)                          $
             12,871                    $
            49,661                   $
              62,532





              
                Balance as of December 31, 2024 51,845,493                           5 46,659,565                                  5                                       (200,000)                                                        208,701                        (195,387)                               (1,432)                                     11,892                              54,342                               66,234



              Net loss                                                                                                                                                                                                                                                             (3,402)                                                                          (3,402)                              (245)                             (3,647)



              Share-based compensation                                                                                                                                                                                                                                                                                                                                                                     370                                  370



              Issuance of ordinary shares, net of           7,142,858                           1                                                                                                                                                     41,630                                                                                                            41,631                                                                  41,631
    offering costs



              Shares repurchase                                                                                                                                                 (2,805,067)                                                       (13,771)                                                                                                         (13,771)                                                               (13,771)



              Foreign currency translation                                                                                                                                                                                                                                                                               (1,534)                                    (1,534)                                331                              (1,203)



              
                Balance as of March 31, 2025    58,988,351                  $
           6 46,659,565                      $
              5                                     (3,005,067)                     
            $                         236,560                $
          (198,789)                       $
          (2,966)                          $
             34,816                    $
            54,798                   $
              89,614


                                                                            
              
                SUNCAR TECHNOLOGY GROUP INC


                                                      
              
                UNAUDITED
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                
              
                (In U.S. Dollar thousands, except for share and per share data, or otherwise noted)




                                                                                                                                                                           For the three months ended March
                                                                                                                                                                                             31,


                                                                                                                                                                           2024                                         2025



              
                 CASH FLOWS FROM OPERATING ACTIVITIES:



               Net loss                                                                                                                                       $
           (4,987)                           $
            (3,647)



              
                 Adjustments to reconcile net loss to net cash used in operating activities:



               Provision for credit losses                                                                                                                               1,291                                        1,130



               Depreciation                                                                                                                                              1,105                                        1,272



               Amortization of right-of-use assets                                                                                                                         200                                          231



               Share-based compensation of subsidiary                                                                                                                      374                                          370



               Loss on disposal of property, software and equipment                                                                                                                                                      3



               Deferred income tax benefit                                                                                                                               (312)                                       (142)



               Financing expense related to issuance of GEM Warrants                                                                                                       151                                          149



              
                 Changes in operating assets and liabilities:



               Accounts receivable                                                                                                                                         115                                      (8,754)



               Prepaid expenses and other current assets                                                                                                              (27,437)                                     (9,980)



               Accounts payable                                                                                                                                         21,823                                        9,766



               Deferred revenue                                                                                                                                          4,906                                        1,097



               Accrued expenses and other current liabilities                                                                                                          (1,385)                                       (504)



               Tax payable                                                                                                                                                                                            (33)



               Operating lease liabilities                                                                                                                               (217)                                       (157)



               Amount due to related parties                                                                                                                                73                                         (66)



              
                 Total net cash used in operating activities                                                                                                (4,300)                                     (9,265)





              
                 CASH FLOWS FROM INVESTING ACTIVITIES



               Purchase of property, software and equipment                                                                                                              (168)                                        (17)



               Proceeds from disposal of property, software and equipment                                                                                                                                                1



               Purchase of short-term investment                                                                                                                      (21,059)                                       (122)



               Proceeds from the redemption of short-term investment                                                                                                    21,362



               Purchase of other non-current assets                                                                                                                    (4,211)



              
                 Total net cash used in investing activities                                                                                                (4,076)                                       (138)





              
                 CASH FLOWS FROM FINANCING ACTIVITIES



               Proceeds from short-term loan                                                                                                                            26,417                                       29,535



               Repayments of short-term loan                                                                                                                          (27,127)                                    (29,260)



              Repayments of payables to a related party                                                                                                                                                            (4,998)



              Shares repurchase                                                                                                                                                                                   (13,771)



               Proceeds from issuance of ordinary shares, net of issuance cost                                                                                                                                      41,631



              
                 Total net cash (used in) provided by financing activities                                                                                    (710)                                      23,137





               Effect of exchange rate changes                                                                                                                           (464)                                     (1,427)





               Net change in cash and restricted cash                                                                                                                  (9,550)                                      12,307





              
                 Cash and restricted cash, beginning of the period                                                                              $
     
             33,595                $
              
              29,512



              
                 Cash and restricted cash, end of the period                                                                                    $
     
             24,045                $
              
              41,819





              
                 Reconciliation of cash and restricted cash to the unaudited
    condensed consolidated balance sheets:



               Cash                                                                                                                                            $
           21,396                             $
            39,222



               Restricted cash                                                                                                                                  $
           2,649                              $
            2,597



               Total cash and restricted cash                                                                                                                  $
           24,045                             $
            41,819





              
                 Supplemental disclosures of cash flow information:



               Income tax paid                                                                                                                                    $
           112                                 $
            91



               Interest expense paid                                                                                                                              $
           953                                $
            869





              
                 Supplemental disclosures of non-cash flow information:



               Obtaining right-of-use assets in exchange for operating lease liabilities                                                                           $
           63                                 $
            33



               Prepaid financing expense related to issuance of GEM Warrants                                                                                    $
           1,291                                $
            685

View original content:https://www.prnewswire.com/news-releases/suncar-technology-reports-first-quarter-2025-results-302459545.html

SOURCE SunCar Technology Group Inc.